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LABOR LAW SEMINAR

Introduction to Labor & Employment regulations in Japan

2006.12.7(Thu)
Risks of Dismissal and Working Hour Issues




Useful Likns for understanding Situations for Labour area in Japan

The Rules of Employment (Work rules)

General rules

There are company rules concerning working conditions and office regulations. Any business establishment of company or organization which at any time employs 10 or more workers must provide such rules of employment and submit them to the Labor Standards Inspection Office.
Breach of above duty shall be sentenced to a fine of not more than 300,000 yen(LSL).

The company or organization must also make them well known to the employees. Therefore, the employer must prepare an English or other language version for employees who may find it difficult to understand the rules in Japanese.
An individual labor contract, in which the working conditions are inferior to the rules of employment standards, shall be invalid. In such a case, the parts of the contract, which are invalid, shall be governed by the rules of employment standards.

Required items in the rules of employment

The following items must be stipulated in the rules of employment:

  1. Mandatory required matters
    • Matters pertaining to the time at which work begins and at which work ends; rest periods; rest days and leave; and matters pertaining to the change in shifts,
    • Matters pertaining to the methods of determination, computation and payment of wages (excluding extraordinary wages), the date of closing accounts and of payment and increases in wages,
    • Matters pertaining to retirement (including reasons for dismissal).

  2. Relative required matters
    (Required when there are applicable stipulations )
    • Retirement allowances, matters pertaining to the scope of workers covered; methods for determination, computation, and payment of retirement allowances; and the dates for payment of retirement allowances
    • Extraordinary wages and the like (but excluding retirement allowances) and/or minimum wage amounts, matters pertaining to such items
    • The cost of food, supplies for work, and other such expenses, matters pertaining to such items;
    • Safety and health, matters pertaining to such items
    • Vocational training, matters pertaining to such items
    • Accident compensation and/or assistance for injury or illness outside the course of employment, matters pertaining to such items
    • Matters concerning commendations and/or sanctions, matters pertaining to their kinds and limits
    • Other matters applicable to all workers at the workplace concerned

Procedures for rules of employment

In drawing up or even changing the rules of employment, the employer shall ask the opinion of either a trade union organized by a majority of the workers at the workplace concerned where such a labor union exists, or a person representing a majority of the workers where no such union exists. Ask the opinion do not necessarily mean to get an agreement from representative however, it is required to get agreement when lowering existing employment conditions (Unfavorrable modification).

Upon submission to the Labor Standards Inspection Office, the document stating opinion of representatives must be attached.

Sample of rules of employment

To see sample provisions of rules of employment

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